The low exchange rates offered by airport bureaux de change have been exposed after researchers found some offering just €1 to the pound, and similarly poor rates for US dollars.
Holidaymakers using the Moneycorp exchange booth at Bristol airport on Monday to buy currency were being offered just €1.0008 – almost parity with the pound – and just $1.054 if heading to the US.
The rates on offer at ICE bureaux de change at Luton and Edinburgh airports were barely higher, with those travelling to the eurozone getting €1.007 for each £1 exchanged. The rates offered at all the big airports were substantially down on what customers would get if they pre-ordered currency, or used their bank card in foreign ATMs.
Since the Brexit vote the pound has been hovering around the €1.18 level – down from a pre-vote €1.30. The tourist rates offered to those who just turn up at airline booths without pre-booking their holiday currency have long been poor, but appear to have hit a new low.
Currency specialist Caxton FX surveyed the walk-up rates at the UK’s biggest airports on Monday and the findings will shock those planning to buy foreign currency this summer. The ICE booths at both Heathrow and Gatwick were offering those heading to Europe the best rates – €1.07 for every pound swapped.
For those heading to the US it was a similar story. Travellers through Heathrow got the best walk-up rates, but it was still a lowly $1.19 for every pound.
Since Monday, sterling has rallied a little, but remains substantially down on the levels prior to the referendum. One pound currently buys around $1.30 on the foreign exchange markets.
Rupert Lee Browne, CEO of Caxton FX, said: “Currency exchange bureaux at the airport have a captive audience, so they can offer outrageously poor rates and are still confident that people will purchase foreign currency from them.”
Koko Sarkari, who runs ICE, said: “We work hard to keep our prices fair and competitive around the world. However, due to differences in distribution, costs of operation, regional competition and other factors such as ongoing volatility in the market, online prices may not be the same as our ICE branch prices. Prices may also vary between branches because of these factors.”
Experts say travellers can boost their foreign spending power by getting the best possible rate when accessing foreign currency. Pre-paid cards offer substantially better rates, as do certain bank cards. Pre-ordering currency from the big providers – either for home delivery or for pick-up – will also result in consumers getting better rates.
The ICE website showed it offering €1.17 on Wednesday for home delivery compared with the €1.007 its airport booths were offering on Monday – a difference of almost 14%.
